The interest rate whipsaw intensified as August nonfarm payrolls grew by 162,000, well above the consensus estimate of 53,000. The S&P 500 flipped from green to red on the news, and the 2-year Treasury yield rose to 4.416%, its highest reading since January 2025. Once again, the Federal Reserve’s interest rate decision was thrown a curveball, and now the committee must decide whether to hike or remain on hold until December. That decision has different implications for different parts of the economy, and investors can bet on their assumptions through highly liquid exchange-traded funds (ETFs).
